Tesla owners insured through AAA could see premiums jump by as much as 30 percent with the insurer claiming high-than-average claim rates and repair costs, according to a report from Automotive News.
The publication also talked to other large insurers, who said they couldn’t say for sure if the price of Tesla coverage would increase, but said claim frequency is always used to calculate insurance premiums.
A spokesperson for Tesla told Automotive News: “This analysis is severely flawed and is not reflective of reality.”
AAA is using data from the Highway Loss Data Institute that is disputed by Tesla. The average claim rate for crashes and collisions is figured by comparing like cars. Tesla’s Model S and Model X are categorized as “large luxury vehicles,” a class that includes BMW 5 series, Mercedes-Benz E class, Audi A6, and Volvo XC70. The Highway Loss Data Institute says luxury vehicles are more frequently in collisions and more expensive to more expensive to repair. The data suggests that Model X owners, for instance, are 41 percent more likely to file a claim and repairs can cost 89 percent more than other cars.
“Consumers will pay for that when they go to insure one,” Insurance Institute for Highway Safety spokesman Russ Rader told Automotive News.